Today (Sep 4), the market for meals in China is shown as follows:

Soybean meal: U.S. soybean futures further climbed on Thursday on strong export data and as hot and dry weather could lower down U.S. soybean yield, and meal futures swing slightly higher on China’s Dalian Commodity Exchange today. Spot soybean meal prices fluctuate 10-20 CNY/tonne at 2,870-2,980 CNY/tonne in coastal regions. (Tianjin 2970, Shandong 2910-2930, Jiangsu 2865-2900, Dongguan 2870-2880, and Guangxi 2900-2910.) The firm trend in U.S. soybean prices lends support for the cost side. The demand for soybean meal in China now is increasing in line with a sustained recovery in livestock breeding and as soybean meal has a bigger share in feed formula due to its higher value-to-price ratio. Domestic millers have sold out 70-80 percent of September soybean meal so far. These are shoring up meal market. However, investors are buying up oils and selling meals to book profits due to rising CNY and strong soybean oil futures. And soybean meal inventories keep increasing under high soybean crush and huge soybean imports, so that some millers have to quicken up the pace of deliveries, which is still limiting rises in meal prices. Overall, short-term soybean meal market is predicted to swing with a strengthening trend. Buyers are suggested to keep appropriate stockpiles and remain cautious in chasing after higher prices.

Imported rapeseed meal: U.S. soybean futures further rose on Thursday. And meal futures in China fluctuate fractionally today. Rapeseed meal price in coastal regions remains at 2,260-2,350 CNY/tonne, seeing a light trading. Rapeseed crush still stays at low levels due to limited rapeseed imports amid tensions between China and Canada. In this case, rapeseed meal stocks in coastal regions have fallen for four weeks in a row. Moreover, soybean meal for September contract is oversold in some oil plants and many contracts remained to be fulfilled for the moment. Consequently, the overall soybean meal market still keep strengthening, boosting rapeseed meal price to rebound. Besides, soybean crush remains super high as soybean arrival at ports is huge in quantity, leading to a consecutive increase in soybean meal stocks in coastal regions. This has curbed meal price. It is expected that short-term rapeseed meal price will probably fluctuate to stay strong.

Imported fishmeal: Imported fishmeal prices steady today and can be traded through negotiation. Peruvian Standard SD with 65% protein content is 9,900 CNY/tonne; Peruvian higher-quality SD with 65% protein content is 10,300-10,400 CNY/tonne; Peruvian higher-quality SD with 67% protein content is 11,200 CNY/tonne; and Peruvian Super Prime SD with 68% protein content is 11,600-11,700 CNY/tonne. While new fishmeal cargoes are arriving at domestic ports and of lower cost (Chinese yuan moves slightly higher this week), the overall demand is disappointing in China now, so that traders are rushing to lock in profits and prices fall further at some ports today. This is negative to the overall fishmeal market in China.

Stocks at ports: Huangpu 41,000 tonnes, Fuzhou 14,000 tonnes, Shanghai 25,000 tonnes, Tianjin 1,000 tonnes, Dalian 5,000 tonnes, Fangchenggang 1,000 tonnes and 4,000 tonnes at other ports.

FOB quotes from foreign markets today: Sept/Oct shipments are quoted at 1,250 USD/tonne for Peruvian Standard with 65% protein content and at 1,480 USD/tonne for Peruvian super with 68% protein content. Chilean Standard with 65% protein content is quoted at 1,220 USD/tonne, and super with 68% protein content at 1,450 USD/tonne.

Cottonseed meal: Cottonseed meal prices stay stable with a decline of 30-50 CNY/tonne in individual regions today. Investors take an arbitrage by buying oils and selling meals as Chinese Yuan goes up and soybean oil performs well, which is bearish for meals prices. Due to huge imports and high crush of soybean, soybean meal inventory rises consecutively. Besides, the demand for cottonseed meal is reduced as feed mills adjust the feed formula due to its lower cost performance compared to soybean meal. Consequently, cottonseed meal trading gets lighter, depressing its price. But cottonseed is pricey, pushing up the cost. Accordingly, factories have intention to prop up price. Furthermore, livestock breeding is recovering gradually, which may bring cottonseed meal market some bullish support. It is predicted that cottonseed meal market may fluctuate in a narrow range in a short term.

(USD $1=CNY ¥6.84)